Constraints of venture capital in us, Finance Basics

Constraints of Venture Capital in US

1. Require of rich investors in US, thus inadequate equity capital.

2. Inefficiencies of stock market - NSE is investors and inefficient cannot sell the shares in future. Prices do not reflect all the obtainable information in the market.

3. Infrastructural problems - this limits the increase rate of small firms that require raw unlimited access and materials to the market factors of production.

4. Require of managerial skills on part of owners and venture capitalists of the firm.

5. Nature of small business in US.  There are three (3) kinds.

a. Large MNC - these are established firms such could raise funds simply.

b. Asian owned small businesses - They are family owned thus do not need interference of venture capitalists since they are not prepared to share profits.

c. African - owned business - require venture capital but have little potential for growth.

6. Concentrate on low risk ventures as like an example confining to low growth sectors, low technology along with minimum investment risks.

7. Conservative approach via the venture capitalists.

8. Delay in project evaluation as like example months or more thus entrepreneurs lose interest in the project.

9. Lack of inefficient financial system and government support.

Posted Date: 1/30/2013 12:23:08 AM | Location : United States







Related Discussions:- Constraints of venture capital in us, Assignment Help, Ask Question on Constraints of venture capital in us, Get Answer, Expert's Help, Constraints of venture capital in us Discussions

Write discussion on Constraints of venture capital in us
Your posts are moderated
Related Questions
Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate

Quetion1: You are earning 5.2 percent on a certificate of deposit. Inflation is running 3.5 percent. What is the real rate of return on your investment? Question2: Search for

A bond that has $1000 face value and a contract interest rate of 11.4%. The bonds have a current value of $1124 and will mature in 10 years. The firms marginal tax rate is 34%. The

The Morris Corporation has $ 600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris’s annual sales are $# million, its average tax rate is 40% and its net

Obtain a copy of a Comprehensive Annual Financial Report (CAFR) for a state or local government for which you would have an interest. Answer the following questions regarding that

XYZ is considering a capital restructuring to allow $300 million in debt. Currently, XYZ is an all-equity firm with earnings before interest and taxes of $260 million. Assume unlev

how i can get enough money with out doing any works ????????????

You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 13 percent, which is pai


Private Limited Companies These are NOT permitted to advertise their shares so like to attract public money and so that they sell their shares privately as recognized as priva